If you’re looking to secure funding for your business through an SBA loan, understanding your SBSS (Small Business Scoring Service) score is crucial. This score, ranging from 0 to 300, plays a significant role in determining your eligibility for SBA loans and other credit opportunities.
What is a FICO SBSS Score?
A FICO SBSS score is a critical metric used by the Small Business Administration (SBA) and lenders to evaluate your creditworthiness. If you’ve ever visited the SBA website and completed the lender match process, you might have noticed how lenders assess your application based on this score.
When you provide your business and personal information through the lender match program, multiple SBA lenders (and sometimes a few Merchant Cash Advance lenders) will reach out to you. However, the key to moving forward in the funding process is having an SBSS score of 160 or higher. Without reaching this threshold, you won’t even get the opportunity to speak with an underwriter.
How is the Score Calculated?
Your SBSS score is composed of two primary components:
Personal Credit (50%) – Your personal credit score has a substantial impact on your overall SBSS score. Even if you have an excellent personal credit score (such as 800), it may not be enough on its own.
Business Credit (50%) – The other half of your SBSS score is determined by your business credit. A newly established corporation with no business credit may result in a low overall SBSS score, regardless of a high personal credit rating.
For example, if you have a personal credit score of 800 but no business credit history, your SBSS score might only be 140, preventing you from accessing SBA funding. Conversely, if you have a moderate personal credit score of 625 but have robust business credit (such as fully rated Dun & Bradstreet files and Experian trade lines), your SBSS score could reach 200, making you eligible for loan consideration.
Why Your SBSS Score Matters
Achieving an SBSS score of 160 or higher is essential to unlocking significant financial opportunities, such as:
SBA loans
Business credit lines
Bank loans up to $100,000 and beyond
Beyond your SBSS score, lenders may also review additional financial criteria such as profit and loss statements, cash flow, and other business performance metrics. However, having a strong SBSS score sets the foundation for successful funding applications.
How to Improve Your SBSS Score
Improving your SBSS score involves strategic efforts on both the personal and business credit fronts. Here’s how you can boost your score effectively:
Build Business Credit
Work with trusted providers like TrueBuild to establish strong business credit profiles.
Ensure your business is registered with major credit bureaus (Dun & Bradstreet, Experian, and Equifax).
Maintain positive trade lines and payment history.
Enhance Personal Credit
Keep your credit utilization low.
Pay down outstanding debts.
Address any inaccuracies on your personal credit reports.
Maintain Accurate Financial Records
Ensure your business financial statements are accurate and up to date.
Prepare necessary documentation such as tax returns and balance sheets.
Take Control of Your SBSS Score
Your SBSS score is one of the most powerful financial tools available to business owners. By taking proactive steps to improve both your personal and business credit, you can position yourself for substantial funding opportunities.
Let’s work together to maximize your SBSS score. Reach out to us at TrueBuild, and we’ll help you knock the business credit side of it out of the park—coupling it with your personal credit to unlock new funding opportunities for your business!
